The housing market is cooling down a little according to Chemainus realtor Debbie Simmonds, who blames it on a combination of factors.
“The market is cooling down a little due to extremely high prices, banks making it harder to borrow, and the spring rush coming to an end,” she says.
In Simmonds’ weekly report, she notes that four homes actually saw a reduction in price, while only one increased in price. Decreases were an average of 7.2%.
“We are heading into our summer market as the spring market comes to an end,” says Simmonds. “This is a seasonal slow down so normal, but also some slowing caused by the June 1st regulatory changes to lending.”
The regulatory changes she mentions are an increase in mortgage stress tests requirements placed by the federal government. Stress tests are in place to ensure the buyer’s ability to pay a mortgage even if some worst case scenarios should occur.
The stress test is now the higher number of either 2%…